China's Delphi Laser Drops Plan to Buy Corning’s German Unit
Tang Shihua
DATE:  Jun 11 2024
/ SOURCE:  Yicai
China's Delphi Laser Drops Plan to Buy Corning’s German Unit China's Delphi Laser Drops Plan to Buy Corning’s German Unit

(Yicai) June 11 -- Delphi Laser, a Chinese maker of laser systems, has scrapped its plan of acquiring a loss-making German unit of Corning, an American specialty glass and ceramics giant, because regulatory approval remained uncertain even after seven months. 

Following prudent research and negotiations, the potential buyer agreed with the seller to terminate the plan to buy Corning Laser Technologies because it cannot predict whether or when regulators will green-light the deal, the Suzhou-based laser equipment manufacturer announced after the market closed on June 7. 

The two sides agreed that the potential claims, rights, and requirements for both sides would be waived after the termination, the Chinese firm said, without specifying which regulators were hindering its original plan. Based on the announcement the company made last November, the deal would need to be allowed by authorities in China, the United States, and Germany.  

Delphi revealed the investment plan first in November as it was offering up to EUR15 million (USD16.1 million) to acquire all of the equity of the German company, as well as certain inventory of raw materials and fixed assets, from a unit of the American parent. 

Corning Laser develops proprietary glass-cutting technologies that are used to make advanced devices such as augmented-reality displays, semiconductor wafers, and micro light-emitting diode displays. The deal would have helped Delphi Laser to generate market and technological synergies with the target company while benefiting the business of both sides, according to Delphi's announcement in November.

Despite the admitted setback, Delphi's shares [SHA: 688170] still closed 4.2 percent higher at CNY23.48 (USD3) on Shanghai's Star Market today.

Editor: Emmi Laine 

Follow Yicai Global on
Keywords:   Assets Deal Abandon,Regulatory Review Delayed,Laser Processing Equipment Provider,USA,German,Corning Laser Technologies,Delphi Laser